Sitronics posts 1H 2011 net loss of $34.5 million

Russian software and electronics developer, Sitronics, has posted a 1H 2011 net loss of $34.5 million under US GAAP.

The net result compares with the 1H 2010 net loss of $55.4 million, as OIBDA fell from $33.3 million for 1H 2010 to $16.9 million this year, despite revenues climbing from $458.9 million for 1H 2010 to $610.3 million this year.

The 1H figures saw the company post a 2Q 2011 net loss of $21.8 million, compared to a net loss of $30.4 million a year earlier, while 2Q OIBDA fell from $26 million, to $11.1 million, despite 2Q revenues climbing from $268.1 million to $332.6 million.

Sitronics noted it had secured $310 million in new contracts since June, to go with the increase in Revenues during 1H, with the appreciation of the rouble against the US dollar impacting on OIBDA.President of Sitronics, Sergey Aslanian highlighted the forward pipeline of orders, and tipped positive cash flows from operations for the full year.

“All three of our business segments were OIBDA profitable in the quarter and we are investing to further develop our market positions. We remain on track with our long term strategy and have a healthy forward pipeline of US$ 650 million of secured revenues for the second half of the year. We therefore continue to expect to outperform industry growth levels and maintain our guidance for full year revenue growth of between 15% and 20%. When including the impact of the 90 nanometer technology project, we continue to expect to report a full year OIBDA margin of approximately 7%. We also continue to expect to generate positive net cash flow from operations for the full year.”